UPDATE: The tax filing and payment deadline has been moved to July 15, 2020.
The impact of COVID-19 has been tremendous. It’s led to closures of businesses, events, schools and more nationwide, leaving millions concerned for income insecurity.
While the government is debating a $1,000,000,000,000 stimulus package that includes a $1,000 check sent to every American’s home, the IRS hopes to provide some relief by extending the tax payment deadline to July 15. Announced Tuesday the 17th, Treasury Secretary Steven Mnuchin announced that the IRS will waive interest and penalty charges for 90 days for Americans who owe up to $1 million in taxes.
UPDATE: The filing deadline and payment deadline have both been extended to July 15. You can also request an extension until October 15, but tax payments will be due on July 15.
The IRS has been processing tax returns and paying out refunds with no delay so far. Some individual states, such as California and Connecticut, have extended state tax return filing deadlines for residents, but we are still awaiting an update from DC, Virginia and Maryland.
The tax payment extension is very helpful, but here are a few reasons to file your taxes now.
For now, the IRS has said they will continue processing returns and paying refunds as usual, so if you expect a refund, you need to file your return to get it.
WendroffCPA will have no drop in service and expects to file any return received before March 25th by April 15th. We will also e-file and directly deposit your refund. Typically tax payers get their refund within 21 days of submitting their return.
As of the first week of March, the average taxpayer receiving a refund was getting about $3,000, according to IRS statistics.
The IRS announced on Tuesday that individual taxpayers could defer up to $1 million in tax payments for 90 days. Deferment is just postponement though, and barring additional government relief, you’ll have to pay your balance when the deferment period is up. The upside is that you won’t be charged interest or penalties during this time.